Chapter 14 Global Marketing Decisions: Sales Promotion, Personal Selling, Special Forms of Marketing Communication

PowerPoint By Kristopher Blanchard North Central University

Prentice Hall (c) 2005

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Sales Promotion
Sales promotion refers to any paid consumer or trade communication program of limited duration that adds tangible value to a product or brand
Price vs. non-price promotions (e.g. price reduction, coupon vs. free samples, sweepstakes, contests etc.) Consumer vs. trade (sales) promotions (individual consumers vs. distribution channel)
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Sales Promotion
Provide a tangible incentive to buyers Reduce the perceived risk associated with purchasing a product Provide accountability for communications activity Provide method of collecting additional data for database

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Sales Promotion: Global or Local

In countries with low levels of economic development, low incomes limit the range of promotional tools available Market maturity can also be different from country to country Local perceptions of a particular promotional tool or program can vary Local regulations may rule out use of a particular promotion in certain countries Trade structure in the retailing industry can affect the use of sales promotions.

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Couponing

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Sampling
Sampling
Provides consumer with opportunity to try product at no cost May be distributed in stores, in the mail, through print media, at events, or door-to-door
Usage of event marketing and sponsorships to distribute samples

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Couponing
Couponing
Printed certificates entitle the bearer to a price reduction or some other special consideration for purchasing a particular product

Couponing accounts for 70% of consumer promotion spending in the US Different varieties: free-standing insert, inand on-pack coupons as well as crosscoupons
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Sales Promotion: Issues and Problems

Fraud
Pepsi promotion with Apple

Regulations vary by country Cultural dispositions to coupons and other sales promotions
Malaysians see coupon usage as embarrassing Islam frowns on gambling so sweepstakes may not work

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Personal Selling
Person-to-person communication between a company representative and potential buyers Focus is to inform and persuade prospect Short-term goal: make a sale Long-term goal: build relationship

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Personal Selling Hurdles

Political Risks unstable or corrupt governments change the rules for the sales team Regulatory Hurdles Governments can set up quotas or tariffs that affect the sales force Currency Fluctuations increase and decrease in local currencies can make certain products unaffordable Market Unknowns lack of knowledge of market conditions, the accepted way of doing business, or positioning of the product may derail the sales teams efforts
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The Strategic/Consultative Selling Model

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The Strategic/Consultative Selling Model

Personal Selling Philosophy commitment to the marketing concept and a willingness to adopt the role of problem solver/partner Relationship Strategy game plan for establishing and maintaining high-quality relationships with prospects/customers Product Strategy plan that can assist the sales representative in selecting and positioning products to satisfy customer needs
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The Strategic/Consultative Selling Model

Customer Strategy plan that ensures that the sales professional will be maximally responsive to customer needs Presentation Strategy consists of setting objectives for each sales call and establishing a presentation plan to meet those objectives

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The Strategic/Consultative Selling Model

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The Presentation Plan

Approach Presentation Demonstration Negotiation Closing Servicing the Sale

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Sales Force Nationality

Expatriates Host country Third country Other options

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Expatriates
Advantages
Superior product knowledge Demonstrated commitment to service standards Train for promotion Greater HQ control

Disadvantages
Higher cost Higher turnover Cost for language and cross-cultural training

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Host Country
Advantages
Economical Superior market knowledge Language skills Superior cultural knowledge Implementation quicker
Return
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Disadvantages
Needs product training May be held in low esteem Language skills may not be important Difficult to ensure loyalty

Third Country
Advantages
Cultural sensitivity Language skills Economical Allows regional sales coverage

Disadvantages
May face identify problems May be blocked for promotions Income gaps Needs product and/or company training Loyalty not assured

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Other Options
Sales agents Exclusive license arrangements Contract manufacturing or production Management-only agreements Joint ventures

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Special Forms of Marketing Communications

Direct Marketing
Direct mail Catalogs Infomercials, Teleshopping

Event Sponsorship
Concerts, sporting events Product placement in movies

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Catalogs
A magazine style publication that features photographs and extensive information about a companys products

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